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Liverpool and their return to the Champions League for the 2024/25 season has provided a substantial financial boost to the club, with recently published financial accounts showing significant losses during their year away from Europe’s premier competition.

The Merseyside club posted a pre-tax loss of £57 million ($72 million) for the 2023/24 financial year, representing a steep increase from the £9 million loss recorded in the previous season.

This financial downturn came despite the club achieving record commercial revenues, highlighting the crucial importance of Champions League participation to the club’s overall financial health.

The £57 million loss for the 2023/24 season marked the first time since 2016/17 that Liverpool had not competed in Europe’s Premier competition, with the financial impact of this absence clearly evident in the accounts.

Lewis Steele of the Daily Mail has now reported that the Anfield club will net at least £47.3million from taking part in this season’s Champions League – close to double the amount recieved for their participation in the UEFA Europa League last season.

The club finished top of the league phase with an outstanding record of seven wins from eight matches, ensuring they received the highest possible performance-related payments.

Liverpool received a guaranteed participation fee of £15.65 million simply for qualifying for the competition.

Their seven victories in the league phase earned them an additional £12.6 million, with each win worth £1.8 million.

The Reds’ impressive performance in topping the league phase secured them an additional £8.3 million, plus a £1.7 million bonus for finishing in the top eight of the 36-team league.

The new Champions League format also rewards teams based on their final position in the league phase.

With 36 shares worth £230,000 each awarded to the top team, Liverpool earned approximately £8.28 million from this component alone.

Each club receives shares corresponding to their position, with each position lower receiving one fewer share.

Additionally, a significant portion of Liverpool’s Champions League revenue comes from the “value pillar” – a combination of payments based on the club’s ten-year coefficient ranking and the broadcast revenue share from all participating countries.

With Liverpool ranking fourth in the UEFA club coefficient behind only Real Madrid, Manchester City, and Bayern Munich, they stand to receive one of the highest allocations from the value pillar’s total prize pot of £717 million.

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